Huge chain with pubs across Wales says 'venues not at risk' as it struggles with £2bn debt
One of the UK's largest pub groups has said that their pubs in Wales are not at risk despite reported financial struggles. Stonegate, which operates Slug and Lettuce, Popworld, Walkabout and many more pubs in Wales, has reportedly yet to secure new loans to cover its debts, with repayments due as early as June next year.
Despite ongoing talks with potential lenders, Stonegate has confirmed to WalesOnline that no venues are at risk due to refinancing. However, its annual report said “there is an indication that a material uncertainty exists that may cast significant doubt on the company and group’s ability to continue as a going concern” and said this meant the group “may be unable to realise their assets and discharge their liabilities in the normal course of business”. This comes after a challenging period for the hospitality industry due to Covid-related closures, rising costs and changing consumer spending habits amid the cost of living crisis.
One of its pubs in Barry is set to re-open next week after a transformation. The Baruc Arms, which received a £113,000 investment from Stonegate's Craft Union division, is set to open its doors on Wednesday, April 17.
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Other pubs owned by the company in Wales include Henry's and the Pen and Wig in Cardiff city centre, and the Eli Jenkins and Gower Inn in Swansea. Stonegate's CEO, David McDowall, told WalesOnline he was "really pleased" with the performance of the business in 2023, which included a sector-leading Christmas trading period.
He added: "We have delivered a rise in revenue and a significant increase in profitability. Our all-round performance exemplifies the strength and depth of the Stonegate estate, with our outstanding Craft Union and L&T divisions continuing to lead the way. This is testament to the hard work of our people and partners, but also to the success of our on-going initiatives to increase profitability across our portfolio of brands and venue formats.
"Our performance gives me real confidence in the future and excitement in seeing our strategy come to fruition. Notably our asset optimisation plan which makes sure we have the right pub in the right location, further profit improvement initiatives, and above all our efforts to continue to support the Great British pub. With a summer of sport on the horizon, and the Euros and T20 World Cup fast approaching, we are looking forward to building on this momentum in the months ahead. We have been very clear that we continue to work towards achieving our long-term balance sheet goals, with the successful refinancing of a portion of our estate in December marking a significant strategic step towards this. We would also like to assure our valued employees and partners that venues are not at risk as a result of this process.”
Some of the Stonegate venues in Wales
Cardiff and Vale of Glamorgan
Owain Glyndwr
Slug And Lettuce, The Friary Centre
Popworld Cardiff
Slug And Lettuce Cardiff Central, St Mary Street
Yates Cardiff, Greyfrairs Road
Henry's Cardiff
Be At One Cardiff
Walkabout Cardiff
Pen & Wig
The Royal Oak, Merthyr Road, Whitchurch
Gassys
Woodville
Mackintosh Hotel
St Fagans Castle
Railway Hotel, Penarth
Church Inn, Ty Glas, Llanishen
The Baruc Arms, Barry
Swansea
The Griffin, Wind Street
Slug And Lettuce Swansea
Popworld Swansea
The Olde Cross Keys
Eli Jenkins
The Wig & Pen
The Mill
Plough & Harrow
Castell-Nedd Arms
Gower Inn
Bridgend
Tair Pluen
The Kings Head
Hunters Lodge